# Wrapped Bitcoin

By [olga](https://paragraph.com/@olga-2) · 2023-04-24

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[Wrapped Bitcoin](https://coinmarketcap.com/alexandria/article/what-is-wrapped-bitcoin) is a tokenized version of [Bitcoin](https://coinmarketcap.com/currencies/bitcoin/) (BTC) that runs on the [Ethereum](https://coinmarketcap.com/currencies/ethereum/) (ETH) blockchain.

WBTC is compliant with [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) — the basic compatibility standard of the Ethereum blockchain — allowing it to be fully integrated into the latter’s ecosystem of decentralized exchanges, crypto lending services, prediction markets and other ERC-20-enabled decentralized finance ([DeFi](https://coinmarketcap.com/alexandria/article/what-is-decentralized-finance)) applications.

WBTC is also backed by Bitcoin at a 1:1 ratio via a network of automatically monitored merchants and custodians, ensuring that its price is pegged to Bitcoin at all times and allows users to transfer liquidity between the BTC and the ETH networks in a decentralized and autonomous manner.

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*Originally published on [olga](https://paragraph.com/@olga-2/wrapped-bitcoin)*